TOKYO, Sept 27 — Tokyo stocks gave up early gains and closed slightly lower today as traders eyed developments in the crisis surrounding Chinese property giant Evergrande.
The benchmark Nikkei 225 index edged down 0.03 per cent, or 8.75 points, to end at 30,240.06, while the broader Topix index slid 0.14 per cent, or 3.01 points, to 2,087.74.
“The market is bearish because of the problems facing China’s property industry,” Okasan Online Securities said in a note.
Shares worldwide plunged last week on fears that Evergrande, one of China’s biggest developers, would collapse under debts worth over US$300 billion, taking other companies with it and serving a blow to the world economy.
While concerns about its default have abated for now, analysts warn that markets are far from out of the woods.
Tokyo investors were also in a wait-and-see mode ahead of various domestic events and the release of US economic data later this month, Okasan said.
Prime Minister Yoshihide Suga is expected to announce that a virus state of emergency will end later this week as the number of Covid-19 cases drop.
The restrictions — which mainly limit alcohol sales and restaurant opening hours — currently cover Tokyo, Osaka and other key economic hubs.
Investors are hopeful that the new leader of the ruling Liberal Democratic Party, who will replace Suga after a vote on Wednesday, will inject fresh pandemic stimulus to kickstart the economy, analysts said.
The dollar stood at ¥110.67 (RM4.19) in Asian trade, against 110.73 yen in New York on Friday.
In Tokyo trading, shipping firms were lower with Mitsui OSK Line sinking 6.48 per cent to ¥9,230 and NYK Line down 6.55 per cent to ¥10,270.
Sony lost 0.27 per cent to ¥12,965 while Uniqlo operator Fast Retailing rose 2.30 per cent to ¥78,880.
Automakers were higher with Toyota jumping 2.27 per cent to ¥10,330, Honda advancing 1.31 per cent to ¥3,459 and Nissan climbing 1.39 per cent to ¥566.7. — Reuters
